1. Fowler is expected to pay a dividend of $1.81 one year from today and $1.96 two years from today. The company has a dividend payout ratio of 40 percent and the PE ratio is 18.95 times. If the required return on the company's stock is 11.9 percent, what is the current stock price?
2. You take out a car loan for 21,632 dollars. If your loan has an annual interest rate of 5.73 percent, and you will make monthly payments for 5 years, how much of your first payment will go towards principal (go towards paying down the outstanding loan balance)?